High inflation in Turkey and Argentina leads individual investors to crypto

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The digital currency ownership rate in Turkey ranked first in the world with 27.1%. Argentina followed with 23.5 percent.

Interest in crypto money, which is seen as a safe haven in Turkey and Argentina, where high inflation is experienced, is increasing.

According to the report of the research firm GWI, the digital currency ownership rate in Turkey ranked first in the world at 27.1%. Argentina followed with 23.5 percent. It is estimated that the average of people who owned any cryptocurrency between July and September last year was 11.9 percent.

Decentralized finance: a new world for everything on finance related

The common feature of Turkey and Argentina, which took the first two places in the world, was that they had high inflation. While Turkey’s official annual inflation was 50.51 percent in March, it was 104 percent in Argentina.

The rapid depreciation of local currencies has led especially individual investors to turn to alternative areas to evaluate their savings. Investors showed interest in USD Coin (USDC) and Tether (USDT), which are often referred to as stable coins and are directly indexed to the dollar.

Tribal Credit Lead Researcher Ehab Zaghloul emphasized that individual or institutional investors are now looking for ways to be less affected by the devaluation of local currencies. “They are turning to USDC, USDT, or any other instrument that is indexed to the stronger currency, the US dollar,” Zaghloul said.

Kaiko Analyst Dessislava Aubert also stated that the USDT-Turkish lira transaction volume has seen a high level in recent months before the upcoming elections.

Bitcoin and DeFi drive cryptocurrency rebound in 2023

In their briefing, K33 Research analysts also stated that “In general, the rate of adoption of cryptocurrencies tends to increase in countries with high capital constraints, financial and political fluctuations.”

South Korea stands out in terms of transaction volume

Although the collapse of the FTX exchange and the administrative problems Binance faced scared investors a little, the trading volumes on the cryptocurrency exchanges are returning to their old days.

Excluding transactions between the dollar and cryptocurrencies worldwide, the South Korean won was the most traded currency.

Transaction volumes in South Korea also returned to their levels in the first and second quarters of last year, after the slowdown in the last quarter of 2022.

Another remarkable feature in South Korea is that while Bitcoin and Ethereum maintain their weight in the world, alternative crypto money transactions other than Bitcoin and Ethereum, known as altcoins in the Far East country, have come to the fore.

Would you like to protect your savings from inflation? If you decided to go from this path, it is a good start to use decentralized exchanges. Trade on Venice Swap.

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